BUSINESS REPORTER
Zimbabwe Stock Exchange-listed microfinance firm GetBucks has expanded its loan book for Small to Medium Enterprises (SMEs) in the six months to June 30, 2021 to ZWL$4.9m from ZWL$4.7m in the prior comparative period, Business Times can report.
Access to finance has become difficult for SMEs as banks have been demanding collateral, which many SMEs have been struggling to produce.
However, GetBucks said it will continue to use the freed up capital to increase their lending to SMEs.
GetBucks board chairman, Rungano Mbire said the lender was able to grow credit lines which were deployed to the SMEs.
‘’The microfinance bank has seen significant growth of its financial position which has largely been driven by the ability to raise credit lines which will continue to be deployed into the loan book to increase interest income.’’
‘’In addition to this, the provision of financial services using technology continues to be the core focus of the bank. The authorised dealership license has allowed various small retail clients to access foreign currency from the foreign currency auction for use in their microbusiness. This will enable the bank to provide access to individuals that would otherwise not have known how to access financial services in foreign currency,” Mbire said.
In the period under review, borrowings increased by 175% from ZWL$121m to ZWL$332m due to new funding received from a local financial institution for working capital.
These funds were deployed into the loan book which in turn grew by 95% from ZWL$99 m to ZWL$193 m with loans to the SMEs contributing to the total loan book growth.
Interest income increased by 212% from ZWL$52m in 2020 to ZWL$162m in 2021.
The corresponding increase in interest expense was relatively lower than the increase in total borrowings, as it increased by 160% ZWL$ 25 m in 2020 to ZWL$65m in 2021.
